Supply and Demand Price action

Trading the News

I know I have not been talking about this most of the time because who gives a …… ? Fundamentalist , may be , but I am not that kind of trader. I only trade when opportunities put money on the table. That’s where demand and supply come into play. By quantifying it on a Price chart.

Here is today trade which is still open. US session later on will be 1 high impact news on Building Permits data at 21:30 my time. So not that significant but let just see where price will show ( or where smart money or bank traders or Big institution placing their order flow. )

During London session, those English boys back in London traded the EURUSD selling it after the open. Why I know this. IT’s because of this.

Now My plan was to close 50% of my position size at 1.37363. If price reacts and bounce, I probably not bother but awaits if the news will catapult the price lower. From there we’ll see if it gives us extra reward from this Day trading setup!

Obviously, When I saw the supply before the GBP news on BOE minutes, I already decide to sell it when price reach supply. With a firm believe , my quick snapshot that this supply forms inside a 1 hour chart supply, hence there will be no traces of doubt. BUT in case that the price decided the opposite , I already move my SL + 5 below my entry.

So …I will wait…and check again during NY session. … while I do that, I might as well continue my skyrim game. .. will continue the paragraph soon..

21:32 Brunei Time..

Ok , I am looking at some reaction. Must be US news releases. I have close 50% of my position size as planned. Now moving my SL just above the NY open supply.

Just before the News release, the price as balancing. Making an efficient volatility. Most of the range price are filled and matched. A sudden spike will be filled immediately usually after the news.

And completes the order at the supply of NY. SO I am going to ride this trade towards H1 demand or support , which ever comes first. Or We can decide to hold this if it is a start of a bearish run.